Calculating maximum mortgage for expats

Mortgages for Expats with EU Nationality

If you hold the nationality of a European Union member state or Iceland, Norway, Liechtenstein, or Switzerland, you are not required to provide a permanent residence permit when applying for a mortgage. Expats with income from employment can apply for a Rabobank mortgage under regular conditions. You can borrow up to 100% of the market value of your property, and even 106% if you wish to make sustainable improvements to your home.

Mortgages for Expats with Non-EU Nationality

If you have a nationality other than those mentioned above or hold a temporary residence permit, you will need to provide a residence document issued by the Immigration and Naturalization Service or a sticker in your passport indicating:

• A permanent residence permit in the Netherlands
• An EU residence permit for long-term residents
• A document indicating "Sustainable residents in the Union"
• A residence permit in the Netherlands for a non-temporary purpose
• As defined in Article 3.5 of the Foreigners Regulation

Calculating Your Mortgage

Calculating your mortgage is crucial when buying a house as an expat. It allows you to determine your eligibility before entering the housing market.

While online tools are available, it's recommended to schedule an appointment with a mortgage lender or advisor for accurate calculations.

They can assess your maximum mortgage, as well as determine:

• Your preference for lower monthly payments by considering a lower cash amount
• The flexibility that allows you to have more funds for other expenses

Determining the Mortgage Amount

In 2023, the maximum mortgage amount can be up to 106% of the property's value. However, additional factors such as income, credit score, and NHG (National Mortgage Guarantee) borrowing borrowing up to €355,000 in 2023 will determine your maximum mortgage.

With every saving percentage, this amount increases to €429,300. It's crucial to consider these measures, as they impact your mortgage calculations.

Mortgage Interest Rates: Variable Rate and Fixed Rate

Once you have calculated the mortgage you can obtain, it's important to consider your mortgage interest rates. Every month, your mortgage interest rate can change.

Mortgage interest rates come in two types: variable rate and fixed rate. After calculating your mortgage interest rates, it's helpful to determine in advance whether you want a fixed or variable option, as both have advantages and disadvantages.

Fixed Rate

• With a fixed-rate mortgage, you lock a specific interest rate for a certain period
• Good for those wanting predictable, consistent monthly payments
• Protects against market rate increases

Variable Rate

• Monthly payments fluctuate with current market interest rates
• Potential for lower initial rates
• Risk of payments increasing if market rates rise

Advantages and Disadvantages of Variable Rate and Fixed Rate

Advantages of Fixed Rate

• No need to monitor interest rate changes
• Stable, consistent monthly payments
• Certainty about monthly expenses

Disadvantages of Fixed Rate

• Risk of paying higher interest if market rates decrease

Advantages of Variable Rate

• Potential for lower initial interest rates
• Flexibility with market conditions

Disadvantages of Variable Rate

• Monthly payments can fluctuate
• Potential for higher payments if market rates increase